What's Happening?
AAR Corp., an Illinois-based company, has acquired Seattle-based Aerostrat, an aviation maintenance software provider, for $15 million plus contingent consideration of up to $5 million. This acquisition is part of AAR's ongoing digital strategy to enhance its Trax subsidiary offerings. Aerostrat's flagship software, Aerros, provides long-range heavy maintenance planning functionality and operates agnostically with any ERP system. AAR aims to accelerate Aerostrat's growth by expanding its customer base and refining solutions, while tightly integrating it with Trax. This move follows AAR's 2023 acquisition of Trax, which has since seen significant growth and new contracts.
Why It's Important?
The acquisition of Aerostrat by AAR is significant as it strengthens AAR's position in the MRO software market, enhancing its digital capabilities and offering new revenue streams. By integrating Aerostrat's technology with Trax, AAR can offer comprehensive solutions to its customers, potentially increasing its market share. This move reflects a broader trend in the MRO industry towards digitalization and consolidation, which can lead to increased efficiencies and cost savings for airlines and maintenance providers. AAR's strategy aligns with industry efforts to become paperless and more technologically advanced.
What's Next?
AAR plans to focus on expanding Aerostrat's customer base and refining its solutions. The company will work on tightly coupling Aerostrat with Trax to leverage combined solutions for customers. This integration may lead to new service offerings and contracts, further boosting AAR's growth in the MRO software sector. The industry may see more acquisitions and partnerships as companies seek to enhance their digital capabilities and streamline operations.
